Abstract
This study attempts to evaluate the economic benefits of the country of origin labeling (COOL) in Taiwan. A Vickrey second-price
sealed-bid auction was conducted to estimate the consumer’s willingness to pay for Taiwan products versus those from China
and Vietnam. Our experiment was designed to investigate the impacts of product tasting on bidding behavior. The regression
results show that tasting raised bids for Taiwan and China teas, but lowered bids for Vietnam tea. The econometric results
show very high premiums for Taiwan products. Taiwanese consumers and food producers stand to benefit greatly with COOL.
sealed-bid auction was conducted to estimate the consumer’s willingness to pay for Taiwan products versus those from China
and Vietnam. Our experiment was designed to investigate the impacts of product tasting on bidding behavior. The regression
results show that tasting raised bids for Taiwan and China teas, but lowered bids for Vietnam tea. The econometric results
show very high premiums for Taiwan products. Taiwanese consumers and food producers stand to benefit greatly with COOL.
- Content Type Journal Article
- Category Original Paper
- Pages 1-15
- DOI 10.1007/s10834-012-9316-1
- Authors
- Wen S. Chern, Department of Economics, National Chung Cheng University, 168 University Rd, Min-Hsiung, Chia-Yi, 621 Taiwan
- Huei-Ching Lin, Chang Fa Enterprise, No.12, Lane 182, Bade Street, Xuejia Township, Tainan 726, Taiwan
- Journal Journal of Family and Economic Issues
- Online ISSN 1573-3475
- Print ISSN 1058-0476